BaFin, financial regulatory authority in Germany, have begun impounding Bitcoin ATMs in the country.
Precisely, BaFin has impounded Bitcoin ATMs operated by Shitcoins Club, a Poland based ATM operator. The German regulator began seizing Shitcoins Bitcoin ATMs after ordering the operators to stop ATM operations in the country but refused.
Why BaFin seized Shitcoins Club Bitcoin ATMs
Hence, BaFin began shuttering “Shitcoins Club” storefronts and seizing its bitcoin ATMs since Wednesday. The Bitcoin ATM operators also were accused of operating without trading licenses in Germany.
Alongside impounding Shitcoins Bitcoin ATMs, the regulators also ordered KKT UG, Shitcoin’s principal, to stop crypto operations in Germany since February. Reportedly, KKT UG disregarded the order and continued operations.
However, with these actions of both KKT UG and Shitcoins Club, a large percentage of crypto ATMs are going to be taken down. Shitcoins Club owns about 17 crypto ATMs in Germany, where the total number of operational crypto ATMs pegged at 67.
The Poland based Bitcoin ATM operator had machines strategically placed at kiosks, shopping malls, and other retail locations across Germany and Europe.
However, Shitcoins Club ATMs, according to crypto ATM analytic website Coinatmradar, would not be missed as they operate only two types of ATMs.
All of the Shitcoins Club’s ATMs are designed and built by the company. They offer transactions in BTC, LTC, ETH, and Dash.
New crypto regulations in Germany
BaFin’s action towards Shitcoins Clubs Bitcoin ATMs came weeks after the European country amended the Fourth EU Money Laundering Directive. The new law put in place by Germany effectively regulates services into the country’s crypto industry.
Interested financial service firms are thereby implored to indicate interest for a license before March and complete its licensing process by November.
Over 40 firms in the country showed interest in getting a license to provide crypto services with the new laws.
German banks, on the other hand, are said to be experiencing difficulties as they try to cope with the new negative interest rate policy put forward by the ECB.